Crown Capital Announces Progress in Addressing Liquidity Issues

• On April 7 2026 Crown Capital announced completion of a $3.4 M sale of a London, Ontario real‑estate asset.
• The company entered an agreement to sell Go Direct Global’s assets to an employee‑led group for up to $10.0 M ($7.5 M at closing, remainder over 25 months).
• Proceeds will first repay the senior secured credit facility; after the March 31 installment the remaining balance is projected at ≈ $7.2 M.
• A forbearance agreement with the senior lender extends the repayment deadline on the credit facility to April 30 2026, giving Crown additional time to meet obligations while a restructuring plan is developed.

• The news delivers concrete, previously unquantified cash inflows ($3.4 M realized, up to $10 M pending) that directly address the senior facility’s repayment pressure.
• It provides temporary relief from an imminent default on the senior line by securing a forbearance to April 30.
• However, interest payments on the 12% subordinated debentures ($3.2 M accrued) and the 10% redeemable secured subordinated debentures remain unpaid; those debts are still in default (since Jan 30 2026) and could be accelerated if not resolved.
• Overall, the announcement materially improves near‑term liquidity but does not eliminate the company’s substantial leverage or profitability challenges. Hence it is a Material - Positive development rather than a routine update.

Crown Capital Partners Inc. operates as a diversified financial services firm with three core segments: - Distribution Services – logistics and distribution operations. - Network Services – hardware sales and related contracts (e.g., Galaxy, Ontario Connects program). - Real Estate – property holdings and associated rental income. The company also holds equity method investments in associates such as Crown Capital Partner Funding, LP, Inuknet Communications Inc., and PenEquity Realty Corporation. Its “flagship” initiatives are the Distribution and Network Services divisions, which drove the Q4 2025 EBITDA improvement.